Global‚ regional and local law enforcement‚ revenue and customs agencies from 19 countries are meeting in Cape Town at the annual Anti-Illicit Trade Conference to collaborate on efforts to tackle the illicit tobacco trade in sub-Saharan Africa. South Africa has the highest illicit tobacco incidence in the region and is listed amongst the top five illicit markets globally.In 2013‚ an estimated 31% of all cigarettes consumed in the country were illicit. In 2015‚ this number is still about 23%. More than 60% of these cigarettes are manufactured in South Africa and not declared for taxes‚ with the balance being smuggled into the country by an ever growing network of criminals and syndicates.In terms of impact on the fiscus‚ more than R24-billion in tax revenue has been lost since 2010 or about R4-billion per year.The objective of the conference is to build on the existing foundation of close collaboration between affected countries as well as their law enforcement‚ customs‚ treasury and revenue departments.Speaking at the AIT conference‚ Francois van der Merwe‚ CEO of the Tobacco Institute of Southern Africa‚ said: “What we’ve heard at today’s conference is the need for and willingness of all stakeholders‚ including law enforcement‚ revenue services and customs agencies‚ along with industry‚ to work together to address a challenge that not only eats into country revenues‚ but which also undermines the health agenda and the social fabric of our societies.“The illicit cigarette trade funds and is part of a global and regional network of organised crime.“This year’s conference will focus on effective supply chain controls‚ efficient enforcement of offences and international cooperation and how these can become a meaningful means to combat the illicit trade.”These are all initiatives contained in Article 15 of the World Health Organisation Framework Convention on Tobacco Control (FCTC)‚ known as the Illicit Trade Protocol (ITP) and to which South Africa is a signatory and the first African country to sign the Protocol. The South African Cabinet has approved its ratification by Parliament but it is yet to be translated into legislation.“We have the answers and we are already implementing some of these measures‚ but for it to be truly effective will require a great effort from all stakeholders‚” said Van der Merwe.“We strongly support the Protocol’s approach of stringent licensing and controls across the supply chain‚ including that of manufacturers of both products and equipment. Various forms of licensing already exist but the challenge lies in enforcement. We need to see investigation of rogue manufacturers and revocation of manufacturing licences where they are found to have contravened the law.“We would also like to see people involved in the supply of commercial quantities of tobacco products conduct a proper due diligence on their customers to ensure that their orders are commensurate with demand. When it comes to due diligence‚ suppliers need to establish whether the purchaser has a licence‚ is properly incorporated as a business‚ and has full details of the use and intended sale of the products.”The ITP suggests the adoption of a track and trace system for all products either imported or manufactured across the entire supply chain.“We believe that the most critical area of track and trace is an authentication and verification system. The authorities need to be able to trace product back to a manufacturer so that the excise due can be verified. The current diamond stamp authentication system doesn’t link the product back to the manufacturer which means that revenue services are unable to identify whether excise has been paid on that product or not.“There are many digital options available which will allow revenue services to properly monitor and control the manufacturers and where their product goes.“The final essential component in tackling the illicit trade is international cooperation. The ITP outlines many elements related to this including cross border enforcement‚ training‚ joint investigations‚ extradition and regional administration and legal assistance. We’d advocate that all of these be adopted.”Van der Merwe said that while the declining numbers in the illicit trade in South Africa was encouraging‚ this did not bode well for the rest of the region as organised crime was a moving target prone to shifting its focus to “easier” markets when the going gets tough.The conference takes place in Cape Town from 9 to 11 November...